Gerdau said an entity called Optimus Steel LLC will acquire the mill, along with Beaumont Wire Products and Carrollton Wire Products, for US$92.5 million. The deal, which will further reduce Gerdau’s footprint in America’s commodity long products market, is to close by year’s end.

Earlier in January, the company said it had agreed to sell four rebar mills and nearly three dozen downstream facilities to Commercial Metals Company for US$600 million. 

That acquisition, also expected to close sometime before the end of this year, removes about 2.5 million tons of rolling capacity from its U.S. long products footprint. The Beaumont mill has a meltshop capacity of approximately 700,000 tons. 

The sale is the latest in a series of divestments worth more than approximately BRL3.2 billion that Gerdau has made as it reorganizes its portfolio of assets. 

“The strategy in North America, a key market for us, is to improve our profitability, focus on more value-added products and better serve our customers, positioning Gerdau as one of the most innovative steel companies worldwide. We remain committed to strengthening our position in the U.S. in the next years and we see a great growth potential in the markets that Gerdau will continue to operate,” said Gerdau chief executive Gustavo Werneck. 

That in mind, Gerdau earlier this week announced plans to begin producing 240-mm square blooms at its special bar quality mill in Monroe, Mich., USA. 

Gerdau said that the larger section size will result in a greater reduction ratio, improved surface quality and cleaner steel with fewer inclusions. Production is to begin this fall.